SoFi Bank Launches Stablecoin Settlement via Mastercard Network
SoFi Technologies (NASDAQ:SOFI) shares rose by 3% after SoFi Bank became the first nationally chartered U.S. bank to implement live stablecoin settlement on Mastercard's global payments network. The initiative involves migrating its debit and credit card program to blockchain-based transactions using SoFiUSD, a dollar-backed stablecoin issued by SoFi Bank. Once fully implemented, this system is projected to handle over $25 billion in annualized payment volume. SoFiUSD is backed entirely by cash reserves and regulated as a nationally chartered bank under the Office of the Comptroller of the Currency (OCC). The company also offers merchants instant settlement through its Big Business Banking platform, allowing them to receive funds into SoFi Bank accounts without needing blockchain infrastructure. Discussions are underway with major U.S. retailers and tech platforms about adopting this new payment method. The launch marks a significant step in integrating stablecoins into mainstream financial systems and expands the potential use cases for digital assets beyond card settlements, including cross-border payments and remittances.
